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Copyright Is Owned by the Author of the Thesis. Permission Is Given for a Copy to Be Downloaded by an Individual for the Purpose of Research and Private Study Only Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. The Commercial Imperative in Broadcasting News: TVNZ from 1985 to 1990 A thesis presented in partial fulfilment of the requirements for the degree of PhD in Human Resource Management at Massey University Margaret Ann Comrie 1996 i ACKNOWLEDGEMENTS I would like first to thank my supervisors. Associate Professor Frank Sligo set me on the path and encouraged me throughout, and Associate Professor Ruth Butterworth's wide knowledge of the field and fresh perspective were extremely valuable. I am grateful to Professor Philip Dewe, who spent hours helping with the data analysis. Thanks too to Professor Judy McGregor for her support, especially with decisions on the structure of the report and in giving me the final push to finish. Colleagues throughout the Department of Human Resource Management provided a listening ear and helpful suggestions. Lunchtime sessions with Marianne Tremaine, in particular, helped me keep the study in perspective. Christine Smith's assistance with layout of text and tables is especially appreciated. Alan Cocker, at Auckland University, shared his knowledge and resources. Also I wish to acknowledge those who talked about their experiences at BCNZ and TVNZ, not all of whom could be named in the report. They gave their time generously, and for some the interview meant coming to terms with painful memories. I owe a special debt to Arne Evans for insights into the processes of television, for proofreading, and for his constant support. Thanks are due to the rest of my family, especially my daughters, for encouraging me and not allowing me to feel guilty for the hours spent away from them. ii ABSTRACT Between 1985 and 1990, broadcasting services in New Zealand underwent significant restructuring and deregulation. This was part of a global surge of broadcasting deregulation caused by a mix of technological, political and economic factors threatening Western public service broadcasting systems (Willard & Tracey, 1990). The switch in New Zealand television from public service broadcasting to a commercial approach was both swift and profound, affecting TVNZ and its output at all levels. This study seeks to trace the effects of that transition on a key product, the news. The research epitomizes the growing tensions between two major models of broadcasting as marketplace ideology gains ascendency over public service approaches. This tension has its counterpart in journalism, with its on-going conflict between a commercial rationale and an informative purpose based on notions of empowering citizens. The major study objective was to identify the influence of deregulation and competitive pressure on the nature of TVNZ news from 1985 to 1990. Three methodologies were _ employed: a historical review, a content analysis and a qualitative news analysis. The research takes the perspective of a growing number of scholars arguing for the importance of public service broadcasting (Price, 1995; Scannel, 1990; Tracey, 1992) and an informative news industry (Bennett, 1993; Bernstein, 1992) as a basis for a healthy democracy in a world of technological change. Historical methodologies, especially interviews, were used to identify the roots of the change, key personalities and decision points which resulted in TVNZ' s legislative and internal orientation to profit making. Newsworkers described conflicts over techniques and news values, and losses and gains represented in the new style. iii A content analysis of early evening news bulletins between 1985 and 1990 quantified changes in subject matter and the sourcing and attribution of news. Results confirmed a shift towards a more commercial approach. They showed a reduction in time given to the national news, reduced story length and shorter sound bites (on-camera statements by news sources). There was a swing away from serious news subjects (such as politics, economics, diplomacy and foreign affairs) in favour of more entertainment-oriented subjects (crime, accidents and disasters, human interest, and public moral problem stories). TVNZ news continued to rely on official sources, but increased its use of victims and ordinary citizens as news sources. There was a reduction in cited sources. The qualitative news analysis backed up these findings. It demonstrated how greater pace was introduced into the bulletins and showed growth in emotional, tabloid language in stories and headlines. Analysis of individual news stories used Wyatt & Badger's {1993) typology to demonstrate a shift of function in news items, from information to vicarious experience. The analysis identified verbal and visual techniques used to heighten emotion and increase audience involvement. The study shows how commercial pressures and the drive to increase ratings results in a news mix which short-changes citizens. This threatens democratic participation in a world where most people seek their information from television news and where changing technologies threaten to create a new class of the information impoverished (Kellner, 1990). Because the commercial imperatives shaping news are underpinned by legislation, there can be little long-term change without law changes to reinstate the primacy of PSB values into at least one of New Zealand's publicly-owned television channels, and to target funding for public service news programmes. iv TABLE OF CONTENTS Page No. Acknowledgements ................................................ Abstract . ii Table of Contents . iv List of Tables . xu List of Figures . xm List of Appendices . xiii Chapter One: Scope of the Research . 1 1.1 Introduction ................................................. 1 1.2 The Primacy of Broadcasting News . 1 1.3 Research Strategy and Choice of Methods .................. ....... 3 1.4 Research Questions . 4 1.5 Research Project Plan . 6 1.6 Theoretical Frameworks . 6 1.7 Structure of the Thesis . .. ...... ...... ... ....... .. ........ 7 Chapter Two: Public Service Broadcasting . 9 2.1 Introduction . 9 2.2 Regulated Media .......... ...... .......... .... ... ......... 10 2.3 The Public Service Model . ....... ....... ..... ..... ... 13 2.3.1 Britain and the BBC ..... ....... ....................... 14 2.3.2 Western Europe ......... .. ................ ........... 19 2.3.3 The United States . 21 2.3. 4 The Dominions ................ ...... .............. 22 2.3.5 New Zealand Broadcasting . 24 2.3.6 The Problem of Definining Public Service Broadcasting . 29 2.3.7 Threats to Public Service Broadcasting . 34 2.3.7.1 Criticism from the Left ......... ..... ........ .... 34 2.3.7.2 Criticism from the Right . 35 2.3.7.3 Finance . 36 2.3.7.4 Technology and the Growth of Global Communication . 37 2.3.7.5 Media Theory . 37 2.4 News Theory Related to the Public Service Model . 38 V Chapter Three: The Marketplace Model and Deregulation . 42 3.1 Introduction . 42 3.2 The Marketplace Model . 42 3.2.1 Historical Development in the United States . .......... ... 43 3.3 How Free is the Free Market? . 45 3.4 Critiques of the Marketplace Model . 47 3.5 News Theory Associated with the Marketplace Approach ........ ..... 50 3.6 Deregulation . 53 3.6.1 Global Technological Change ...... .. .. .... ...... ....... 54 3.6.2 Deregulation and Political and Economic Doctrines . 56 3.6.3 Broadcasting as a Consumer Industry . 58 3.6.4 Recent Deregulatory Moves in the United States .............. 58 3.6.5 The 1990 Broadcasting Act in Britain . 61 3.6.6 The European Experience . ........................ ... 62 3.6.6.1 Italy's Deregulation and Re-regulation . 63 3.6.6.2 Germany's Constitutional Approach . 64 3.6.6.3 France's Deregulation with Moderation ................ 65 3.6.7 Effects of Deregulation: Summary . 67 3.6.8. New Zealand Literature on Deregulation .................... 67 3.7 A Future for Public Service Broadcasting . 77 3.8 The Future for Journalism ...... ..... ............... ....... 82 3.9 Summary . 85 Chapter Four: Scope of Methodology . 86 4.1 Introduction . 86 4.2 Methodology for the Historical Narrative . 89 4.3 Content Analysis . 90 4.4 Qualitative News Analysis . 92 4.5 Summary . 93 Chapter Five: Broadcasting Changes 1985-1990 A Historical Overview . 94 5.1 Introduction ........................... ..................... 94 5.2 Methodology . 95 5.2.1 Review of Contemporary Press Reports . 96 5.2.2 Review of Official Documents . ... ... ............. .... 96 5.2.2.1 Limitations of Document Analysis . 97 5.2.3 Interviews . 97 5.2.3.1 Limitations of Interviews . 99 vi 5.3 BCNZ and TVNZ: The Organisational Story . 101 5.3.1 The Outset . 102 5.3.1.1 The BCNZ and the New Labour Government 103 5.3.1.2 The Frozen Licence Fee and its Consequences . 104 5.3.1.3 Management and Board at the Outset . 106 5.3.2 Changes from 1985 to August 1987: The Groundwork Laid ..... 108 5.3.2.1 In Pursuit of Higher Licence Fees . 109 5.3.2.2 The Royal Commission ....... .................... 110 5.3.2 .3 The Broadcasting Tribunal Third Channel Hearings . 112 5.3.2.4 Deregulation: Hunt and the First Term . 115 5.3.2.5 Board and Management Changes ... ................. 116 5.3.2.6 Dick and Mounter: A Clash of Styles . 118 5.3.2.7 Debates About the Future: Excom & Major Players . 120 5.3.2.8 TVNZ Consolidates in Auckland & Responds to the Financial Squeeze . 121 5.3.2.9 New Look Programming & Advertising Fees . 124 5.3.3 August 1987 to December 1988: Restructuring Decisions . 125 5.3.3.1 Third Channel Hearings: Results and Reactions . 125 5.3.3.2 The Prebble Approach . 127 5.3.3.3 The April Announcement . 129 5.3.3.4 The Committees . 130 5.3.3.5 Deregulation Legislation . 133 5.3.3.6 BCNZ: How Inevitable was the Split? . 135 5.3.3.7 TVNZ Gears up for Competition . 136 5.3.4 1989-1990: SOE and Competition . 138 5.3.4.1 Government Moves .............................. 138 5.3.4.2 TVNZ: The SOE's Commercial Orientation ...........
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